Category: Featured in the Media

Guest: Pieter E. Stek, Senior Lecturer, Asia School of Business

Originally published by BFM.

Guest: Dr Elsa Satkunasingam, Senior Business Development Advisor for Corporate and Sustainability Governance, Asia School of Business

Originally published by BFM.

The EPF recently introduced the Retirement Income Adequacy Framework, a three-tiered savings benchmark—basic, adequate, and enhanced—meant to be used as a reference to maintain different levels of financial security post-retirement. Is this framework enough to ensure financial security in old age? On this episode of #ConsiderThis Melisa Idris speaks with Professor Joseph Cherian, Deputy CEO and Practice Professor of Finance, at the Asia School of Business.

Originally published by Astro AWANI.

By Joseph Cherian

So why should Malaysia’s tertiary education system be any different from the more developed world’s? It, too, should be embedded with flexibility. Based on the examples provided below, without delving into financial mathematics, one’s educational experience and value would be enhanced far more than a system without such flexibility. In economics, we refer to this as being on the Pareto efficiency frontier, where resources and opportunities are allocated most efficiently.

Flexibility holds intrinsic value in various aspects of life — careers, investment plans and policymaking. A key reason for this is the uncertainty that surrounds future outcomes. Whether it’s predicting the trajectory of financial markets, the global economy, the exchange rate of the Malaysian ringgit, or even getting into a car accident, our ability to foresee the future is inherently limited.

This unpredictability is evident in the changing demands of the workforce. According to the World Economic Forum, 44% of workers’ core skills will need to change by 2027 due to advances in technology and automation. Meanwhile, the global e-learning market is projected to grow to US$842.64 billion by 2030, highlighting the increasing reliance on flexible, technology-enabled education solutions.

Consider the current unpredictability of global events and their implications for education. In today’s rapidly changing world, traditional systems may no longer suffice. For instance, educational models that rigidly define paths without accommodating individual needs or interests risk leaving many behind.

This is where the concept of flexibility becomes critical in education. Allowing learners to tailor their journeys based on personal or professional goals, or even unforeseen circumstances, enhances the overall value of education. Gap years, modular learning, and asynchronous courses are examples of how education systems can adapt to accommodate diverse needs.

Globally, there is growing recognition of the need for adaptive learning structures. Prestigious institutions have adopted models that allow students to pause their studies, explore interdisciplinary fields, or even take courses remotely. These practices not only enrich the individual learning experience but also contribute to society by fostering creativity, resilience and adaptability among learners.

Take, for example, the emergence of digital and online learning in the last decade. Universities worldwide such as MIT, Cornell University and Yale University have embraced this shift, offering remote learners access to high-quality courses and programs. From engineering in Patagonia to business analytics in Kuala Lumpur, technology has bridged the gap between learners and education, bringing opportunities that were once out of reach.

In Southeast Asia, some educational institutions are adopting flexible upskilling approaches, allowing learners to earn course credits at their own pace and transition into full-time or part-time degree programmes if they choose to pursue a postgraduate degree.

The economic value of flexibility in education extends beyond individual growth. It benefits employers by creating a more adaptable workforce and society by encouraging lifelong learning. According to LinkedIn’s Workplace Learning Report, 94% of employees say they would stay at a company longer if it invested in their learning and development — a testament to the importance of education adapts to evolving career trajectories.

As education systems evolve, the emphasis should remain on quality and accessibility. Agile learning methods, stackable courses, and modular degree options are examples of how institutions can make education more inclusive and relevant. These innovations represent a step toward a future where learning is not just a phase of life but a continuous, adaptive journey.

Educational institutions worldwide are already setting the stage for this transformation. By embracing flexibility, we can create an ecosystem that supports learners at every stage of their journey — and, in doing so, prepare for a future where uncertainty is the only certainty.

The author is Asia School of Business Deputy Chief Executive Officer

Originally published by Business Today.

KUALA LUMPUR: The Asia School of Business (ASB) convened the preliminary launch of the Tun Ismail Ali Center of Excellence in Monetary and Financial Economics (TIA CoE), a Bank Negara Malaysia (BNM) endowed research center. The event brought together leading central bankers, policymakers, and academics to celebrate the inauguration of the center at ASB.

Distinguished speakers included Tan Sri Dr. Zeti Aziz, founding Chair and Co-Chair of the Board of Governors of ASB and former Governor of BNM, who highlighted that Bank Negara Malaysia had established the Tun Ismail Ali Chair at Universiti Malaya 25 years ago, in August 2000. “This Tun Ismail Ali Center of Excellence that is now being established at ASB is aimed at strengthening further the academic and professional knowledge in the area of financial and monetary economics in Malaysia and more broadly in the emerging world.” Meanwhile, BNM Governor Abdul Rasheed Ghaffour in his keynote address emphasized that the center is able to facilitate policymakers to effectively address the upcoming global macroeconomic challenges. He added that the center is also committed to providing training and development opportunities, inline with the center’s long-term objectives for capacity building. “By enhancing the skills and knowledge of our local talent, the center aims to elevate the overall capacity of our institutions”, he said.

In her keynote address, Professor Hélène Rey, Lord Bagri Professor of Economics at the London Business School spoke on the global financial cycles and their impact on emerging markets. Her pioneering research delved into the complex dynamics of financial intermediaries, implying how risk-taking varies across institutions and the challenges this poses for monetary policy. Professor Rey’s in-sights included the trade-offs that policymakers face in managing these dynamics, emphasizing the importance of balancing economic growth with financial stability in a global landscape.

In welcoming the TIA CoE to ASB, Professor Melati Nungsari, Deputy Dean of Research at the Asia School of Business, highlighted, “It is an exciting opportunity to have TIA CoE join ASB, contributing to the school’s ongoing commitment to delivering cutting-edge research, particularly in monetary and financial economics. This new center will help address key challenges, stimulate discussions, and serve as a hub for academic knowledge sharing and research.” She further noted that over the past decade, emerging markets now account for over 60% of global GDP growth, and employ approximately 85% of the global workforce, emphasizing the crucial role of innovative research in shaping the future of these economies.

“TIA CoE will play a role in supporting research and dialogue on contemporary monetary policy issues facing central banks,” said Professor Ho Sui-Jade, co-director of TIA CoE alongside Professor Ozer Karagedikli. “We are excited to collaborate with BNM and the broader academic community to foster research and knowledge exchange between local academics and other researchers in these areas globally.”

The Tun Ismail Ali Center is committed to advancing research in monetary and financial economics, enhancing the capacity of local higher education, and broadening public engagement. As a dedicated research hub for central banking issues in emerging markets, the center will host central bankers, scholars, and researchers to pursue research that support the center’s objectives. TIA CoE will also facilitate academic knowledge sharing through conferences, seminars, and other research events, while providing training and advisory services to central banks and relevant organizations to further its mission. In the lead up to the TIA CoE’s official launch later this year, the center will establish a grant application process for researchers interested in conducting research aligned with the center’s goals.

Originally published by The Exchange Asia.

Malaysia’s data centre industry is growing rapidly, with Foreign Direct Investment (FDI) in technology reaching over $2 billion in 2022. The country’s strategic location and robust infrastructure have made it a key hub for global data operators. However, this growth raises environmental concerns. Data centres require substantial energy, and Malaysia’s energy mix, still reliant on fossil fuels, contributes to higher carbon emissions.

Niaga Spotlight features Dr Gary William Theseira, Adjunct Associate Professor, Asia School of Business and Khoo Wei Yang, Research Associate, Khazanah Research Institute discussing the key issue of mitigating ecological impact via energy transition and other actionable strategies.

Watch here.
Originally published by Astro AWANI.

The Bursa Carbon Exchange (BCX) was launched in December 2022 as part of national efforts towards reducing carbon emissions. Earlier this month on 16 March, the first auction of carbon credits was conducted involving two products featuring offsets from projects in China and Cambodia. Can the BCX gain traction and help Malaysia achieve its net-zero emissions goal by 2050? Dr. Pieter Stek of the Asia Business School gives us his assessment.

Listen to the full interview below.

Originally published by BFM.

KUALA LUMPUR: The Asia School of Business (ASB) and the Massachusetts Institute of Technology’s Sloan School of Management have renewed their partnership, extending a decade-long collaboration that has positioned ASB as a premier institution for business education in Malaysia and the ASEAN region. Established in 2015 through a partnership between Bank Negara Malaysia and MIT Sloan, ASB has significantly advanced in research, education, and innovation, producing leaders who are making impactful contributions globally.

Over the past decade, ASB has distinguished itself with programs such as the Master of Business Administration, Executive MBA, and Master in Central Banking, each fostering leaders equipped to navigate the complexities of global business and central banking. The institution’s faculty, recognized with multiple international awards, contribute extensively to societal, business, and governmental advancements.

ASB’s curriculum stands out in the region, emphasizing intellectual rigor and practical application through its signature action learning approach. This pedagogy, combined with ASB’s unique flipped classroom model, ensures that in-class time is optimized for immersive, hands-on experiences. Students benefit from lectures by both ASB’s distinguished faculty and visiting MIT professors, with an extended immersion program at MIT Sloan further enhancing their academic exposure.

“This renewed collaboration marks a significant milestone for MIT Sloan as we deepen our engagement with the Asia School of Business,” stated Georgia Perakis, Interim Dean of MIT Sloan. “This partnership enables us to expand educational opportunities in the ASEAN region and continue delivering innovative programs to a diverse pool of talented students.”

Kuala Lumpur, January 6, 2025: The Asia School of Business (ASB) and the Massachusetts Institute of Technology’s Sloan School of Management have signed a renewal agreement to extend their decade-long collaboration. ASB was established in 2015 as a collaboration between Bank Negara, the Central Bank of Malaysia, and MIT Sloan with a goal of establishing a premier business school in Malaysia.

Over the last decade, ASB has grown to fulfil this aspiration with demonstrated excellence in research, education and innovation. Its three programs – Master of Business Administration, Executive Master of Business Administration and Master in Central Banking – have created impactful leaders that are making meaningful contributions in global business and central banking. ASB’s faculty have received multiple international awards for their scholarship and seen their work make significant contributions in society, business and governments.

ASB has introduced a unique curriculum and pedagogy to the region. Learning is intellectual and hands-on through its signature action learning program. More and more of ASB’s classes are “flipped” so that in-class time is devoted to studio-like learning. In addition to ASB’s exceptional faculty, ASB students receive lectures from visiting MIT faculty, and ASB students in turn visit MIT Sloan for an extended immersion program, in which they receive full exposure to the ecosystem there.

“This is an exciting moment for MIT Sloan as we embark on the next chapter of our strong collaboration with the Asia School of Business,” said Georgia Perakis, the John C Head III Dean (Interim) of the MIT Sloan School of Management. “As MIT Sloan remains focused on growth in the ASEAN region, our collaboration with ASB will continue to provide us with the ability to enhance educational opportunities and deliver innovative programs to talented students.”

KUALA LUMPUR: The Employees Provident Fund’s (EPF) newly launched Retirement Income Adequacy (RIA) framework establishes a solid foundation for retirement planning, however, questions about its feasibility and effectiveness remain.

Asia School of Business deputy CEO and practice professor of finance Joseph Cherian said the success of the RIA depends on two critical factors.

“Cultivating a culture of financial literacy and early proactive saving among individuals and policymakers and ensuring financial professionals deliver impartiality are critical issues that need to be addressed.

“Further, there is also the issue of cost-effective advice and tailored financial products to help individuals meet their specific RIA target income,” he told SunBiz.

Cherian said these elements are essential to transforming the frame-work from a blueprint into a practical tool for securing retirement readi-ness.

“Yes, the three tiers of the RIA framework are feasible. However, achieving the desired or target income level in retirement depends on having a sufficiently long savings runway and ensuring income adequacy during one’s working years to save in a manner that achieves one of the three RIA benchmarks.

“This requires careful financial planning, disciplined savings, good and unbiased financial advice, and strategic management of financial resources over time,” he said.

On Dec 12, EPF rolled out RIA, a new three-tier savings framework as a reference for Malaysians to maintain different levels of financial security post-retirement.

Launched in tandem with Belanjawanku 2024/2025, the newly introduced RIA framework revises the recommended savings level from a single benchmark to three tiers, comprising “basic”, “adequate”, and “enhanced” levels of savings.

Cherian noted that the newly launched RIA framework by the EPF aims to address retirement planning in Malaysia, given rising living costs and an ageing population.

Cherian said ideally, retirement payouts under the framework should be indexed to inflation, cost of living, or standard of living metrics to ensure financial security.

He said that without such adjustments, the framework risks losing relevance and purchasing power in an inflationary and volatile economic environment.

Additionally, the government should consider incorporating a form of tail risk insurance into the frame-work.

For example, Cherian said, structuring the RIA scheme as a life annuity of payouts rather than a term annuity would ensure lifelong income security.

“This is especially true for individuals who outlive their planned retirement period, the average life expectancy in Malaysia notwith-standing.

The RIA savings levels table needs to be recalculated to accommodate these tweaks,” Cherian said.

Moreover, he added, a needs-based social security scheme would support those unable to meet the savings threshold, providing a more comprehensive approach to our social security net.

EPF’s recent data reveals a concerning trend, with only 36% of active formal members achieving the basic savings level of RM240,000 by age 55, highlighting a growing retire-ment crisis.

This issue is particularly severe for individuals with limited financial capacity to save adequately.

Cherian said addressing this challenge requires actionable solutions.

“Extending work life, supported by upskilling and flexible education opportunities, can boost savings and delay fund depletion.

“Increasing savings rates through higher contributions during working years can mitigate future shortfalls. Additionally, homeowners could consider reverse mortgage schemes to convert home equity into retirement income.

“While these strategies provide viable options, their success relies on comprehensive policymaking and systemic reforms to ensure long-term impact,” he said.

Cherian said the RIA framework is a commendable step forward, but addressing the complexities of retirement savings and adequacy over one’s lifecycle demands com-prehensive, data-driven stra-tegies and active collaboration among individuals, the academy, insti-tutions, and the government.

“It also involves coming up with feasible strategies for those who cannot make the cut, no matter what.

“By fostering financial pre-paredness and implementing inno-vative policies, Malaysia can turn its retirement challenges into sustain-able growth and social stability opportunities,” Cherian said.

Originally published by The Sun.